Major Factors Affecting Housing Prices

Major Factors Affecting Housing Prices

Whether for investment or for residence, the investor wants to see an increase in real estate prices. Although they are very similar, the future prices of some properties may be completely different from others. This is due to the variety of factors that affect housing prices.

In the following list we will talk about the major factors that affect housing prices; 

Location

Location is one of the most important factor affecting the price of housing. Besides the location, the neighborhood that affects your lifestyle also has an important position.

If a house is very close to commercial and social areas, housing prices will be higher than in other regions. Some regions are more valuable than others. Houses in rural or less developed areas are always cheaper than those in developed or urban areas.

In addition, a place that offers easy transportation to motorways, highways, schools, shopping centers and local employment increases the value of the property.

Facilities 

A house must meet all needs for home buyers. If a house has certain characteristics, the price of the house will increase at the same rate.

For example, modular kitchen, video intercom system, children's playground, jogging track, swimming pool, gym, indoor parking, generator or 24/7 security needs to increase housing prices.

Nowadays, many construction companies are developing housing projects with great attention to the green areas. This type of housing projects focus on making use of renewable resources as much as possible, so they are more expensive than ordinary ones.

Physical Conditions

The age of the house and the architecture of the living spaces are among the most important criteria. The fact that the house was built in compliance with the Earthquake codes, being a new construction, being built by a corporate firm, the size of m2 and the number of rooms are in line with the need, and the fact that there are no big differences between the gross area and the net area are the factors that will affect the price positively.

In addition, factors such as balconies and frontages should also be evaluated. It should be noted that the façades located on the mezzanine floor and catching sun are more preferred.

Parking facilities are among the physical factors that affect the price of housing. The fact that your car is safe and that you don't waste time searching for a place to park when you come home in the evening is also an important factor affecting the price.

Official Conditions

Whether the real estate meets the needs legal requirements or not, it should be obtained from the relevant institutions. Title deed situation is among the factors that affect the price. If a real estate is during the project, the construction servitude is established by the contractor, after the completion of the project, the necessary checks are made and the suitability of the project is approved, the Residence Permit is obtained from the relevant authorities and the title deeds are converted to condominiums.

Other than the title deed situation, restrictions such as mortgages or sales annotations on the real estate should be analyzed.  

Investments in the Region

In particular, buying real estate for investment involves risk due to the investment by definition. It is important to follow the transportation, infrastructure and social area projects planned in the medium term in that region. These projects can be exemplify as government projects such as metro construction, airports, hospitals or large projects such as commercial area investments such as shopping malls. It should be confirmed as much as possible that such investment news is beyond the rumor.

Interests

The change in interest rates is a factor that will affect the real estate sector in general, but some houses may be affected more than others. Since the loan costs will increase in the periods of increasing interest rates, both housing supply and housing demand will be adversely affected. Increasing interest rates may push savings investors to different investment areas, which may cause to postponement of housing investments. If the housing to be purchased isn't an urgent need, it will also reduce the demand of investors who will need housing loans due to the increase in loan cost.

House prices is affected by the relationship between interest rates and other economic indicators. If any of these variables change, you can buy a house at a more affordable price. Of course, it may be a reverse situation.

On the other hand, house prices can't be considered separate from the environment. Housing prices in a region where you intend to buy a house may be determined by reference to the surrounding prices.

Finally, the investor is ready to pay more wages to the housing with the properties it needs. Therefore, the most important step of real estate investment is to determine the needs correctly. Additions can be made to these substances in order of importance of personal needs.

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